With crude oil prices falling to near 7 year low, and U.S. Rig Count down by 37% from the same time (12-Dec-14) last year, prospects for the Guar Gum industry are not looking good. Following the decline in crude oil prices, the resultant evaporation of Guar demand from the hydraulic fracturing industry and the more than enough Guar seed available (from the new crop of Nov-2015) to meet any demand, Guar splits price today is at a 5 year low, in Indian Rupee terms, and at a nearly 6.5 year low in USD terms!
Just like it is very difficult to predict crude oil pricing, and if this is the “bottom”, the same applies at present to Guar splits pricing. However considering that the Guar splits price is already at a multi-year low, it would be a good idea to cover your Guar Gum requirements for atleast the next one or two months if not more. Do let us know if you would like to receive a quote!